The Influence Of Original Local Government Revenue, Regional Expenditures, Grdp, And Open Unemployment Rate On Poverty Levels In Central Java, 2017-2022

Dewi Ariani, Agus Arifin, Ratna Setyawati Gunawan, Amin Subiyakto, Werdha Candratrilaksita

Abstract


The purpose of this study was to determine the effect of original local government revenue, regional expenditure, GRDP, and the open unemployment rate on the poverty level. This study uses secondary data where the data is obtained from the official BPS and DJPK websites. Based on the results of research and data analysis using panel data regression shows that: (1) Original Local Government Revenue has a positive effect on poverty, (2) Regional Expenditure has a negative effect on poverty, (3) GRDP has a negative effect on poverty, (4) Open Unemployment Rate has not shown an effect on poverty. The implication of the above conclusions is that the district/city local governments in Central Java Province pay more attention to revenue sources originating from PAD. The source of the revenue should be fully explored and pay attention to the collection procedure. In addition, the allocation from PAD should be used fully for the prosperity of the community, especially in efforts to eradicate poverty. Efforts are being made that district/city regional governments in Central Java Province should pay more attention to the allocation of spending and make maximum efforts for the benefit of the community, especially in the functions of spending on education, health, and social protection. In addition, local governments should pay attention to labor-intensive sectors that are able to provide decent employment opportunities, so that they can help reduce unemployment which can reduce poverty.

 

Keywords: Poverty, PAD, Regional Expenditure, GRDP, Regional Fiscal Policy.


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